Children's Memorial Hospital said Thursday it is exclusively negotiating with Chicago-based McCaffery Interests Inc. for the sale and redevelopment of its Lincoln Park properties.

Children's Memorial Hospital said Thursday that it is exclusively negotiating with Chicago-based McCaffery Interests Inc. for the sale and redevelopment of its Lincoln Park properties in anticipation of the hospital moving downtown in June 2012.

The hospital said McCaffery Interests envisions the properties redeveloped into a "town center" with multi-income housing, open space and retail.

If the deal goes through, McCaffery would be involved in at least two high-profile city projects.

It also is redeveloping the former U.S. Steel plant on the Southeast Side's lakefront into a mixed-used community that would house up to 150,000 people. Last weekend, the site was used for the first time since the South Works plant closed there in 1992. Thousands of music fans attended a three-day event headlined by Dave Matthews.

The Children's Memorial deal includes an agreement not to shop the property to other developers and hinges on McCaffery getting the necessary zoning change, said Martin Stern, of U.S. Equities Realty, the hospital's adviser in selecting the developer.

"We recognize in Lincoln Park — for any property this big — that they've got to go through a community process. No one can dictate what ought to be built on the property," Stern said.

Besides the main hospital, which sits on 3.5 acres at Fullerton and Lincoln avenues, Children's Memorial said it is selling an eight-story office building at 700 W. Fullerton and several properties near the hospital on Lincoln. In total, about six acres will be sold.

The hospital plans to hold on to properties at Clark Street and Deming Place, Belden Avenue and Halsted Street, and on Clybourn and Racine avenues. It also will continue to lease a building at 1731 N. Marcey St.

The hospital chose McCaffery from nine competing proposals in a six-month process. Patrick Magoon, president and chief executive of Children's Memorial, said the developer's proposal incorporated community input and had a target price that will allow them to accomplish their goals.

"We are confident that their team will work with the city of Chicago and the Lincoln Park community in a thoughtful, productive manner to redevelop our hospital properties," he said.

Children's Memorial must move out and decommission the property before the deal can go through, Stern said, which would place the sale sometime in fall 2012.